3 Things To Avoid When Applying For A Mortgage

When you’re in the process of applying for a mortgage to buy a Knoxville area home, your finances and credit will be examined very closely.

Throughout the mortgage application process there are certain things that can affect your ability to qualify for a mortgage . Here are 3 things to avoid when applying for a mortgage.

Making Big Purchases/ Credit Changes

In order to be approved for a mortgage, your mortgage company will want to see that your finances are secure to ensure they will be paid back. While applying for a mortgage, it is important to avoid any significant purchase when applying for a mortgage. A big purchase could raise questions about your spending habits and changes to your credit could change your ability to get a loan. It is important that you don’t open any new credit cards or lines of credit when applying for a loan.

Making Big Lifestyle Changes

When applying for a mortgage, it is important to avoid any significant lifestyle changes. Your lender will want to see that you have a solid job with regular dependable income. This means it is not a good idea to quit your job or to change jobs during the process of buying a Knoxville home. If for some reason this happens during the process, it is extremely important to contact your lender anytime there is a significant change to your income.

Moving Money Around/Making Significant Changes to Finances

When applying for a mortgage, you will need to provide bank statements to prove that you have enough money for a down payment. They will want to make sure that the funds for the down payment have been “seasoned,” meaning that they’ve sat in your bank account for sometime. If funds for your down payment are being gifted, be sure to check with your lender as to how it should be handled.

If you are thinking about buying a Knoxville Area home? If there is anyway Knoxville Home Team can assist you, please let us know, you can call Rick at 865-696-9002 or send an email to Rick@KnoxvilleHomeTeam.com Kati can be contacted at 865-392-5880 or email Kati@KnoxvilleHomeTeam.com

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